Suzlon to Double Chinese Capacity, Reduce Stake in REpower

Indian wind turbine manufacturer Suzlon Energy has announced plans to double its capacity in China to 1,400MW by 2009-10 and is also mulling a stake reduction in German firm REpower, according to the Economic Times, which quoted the company’s chairman Tulsi Tanti.

The news source quoted Mr Tanti as saying that China is a key market for Suzlon and the country’s ambitious renewable energy target coupled with the company’s presence in China makes it imperative for the expansion drive.

China, which has doubled its wind energy target to 10GW, has instructed that 70% of the wind turbines installed in the country should be manufactured locally. Suzlon already has a manufacturing presence in China through its subsidiary Suzlon Energy Tianjin, according to the Economic Times.

Mr Tanti said: “Two things that have worked in our favor is the rise in oil and gas prices and global warming, both supporting the growth of our industry.”

Suzlon is also considering diluting its 34% stake in REpower to encash the gains offered by the 90% growth in the German company’s share value in 2008.